Delaware VIP® Limited Duration Bond Series** (formerly, First Investors Life Series Limited Duration Bond Fund)

Key features

  • A flexible short-term bond fund designed to weather market cycles
  • An actively managed bond portfolio emphasizing risk control and liquidity
  • Experienced management team with a long history of managing short-term portfolios

Objective

Delaware VIP Value Series seeks long-term capital appreciation.

Strategy

The Series invests in securities of large-capitalization companies, seeking consistent long-term performance. The Series follows a traditional value-oriented investment philosophy using a research-based approach.

Series information
Inception date07/01/2014
Dividends paid (if any)Annually
Capital gains paid (if any)Annually
Series identifier
CUSIP246493456

Please click below to view Series performance:

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Total returns may reflect waivers and/or expense reimbursements by the manager and/or distributor for some or all of the periods shown. Performance would have been lower without such waivers and reimbursements.

Average annual total return

as of month-end (10/31/2019)

as of quarter-end (09/30/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.88%4.32%1.28%0.87%n/a0.44%07/01/2014
Bloomberg Barclays 1-3 Year US Government/Credit Index3.78%4.89%1.95%1.60%n/an/a
ICE BofAML 1-5 Year U.S. Broad Market Index4.99%6.47%2.21%2.07%n/an/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.42%3.88%1.14%0.81%n/a0.40%07/01/2014

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to the Fund's inception date.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Expense ratio
Grossn/a
Netn/a

The performance and expense ratio information shown represent the performance and fees as they relate to actual shares of the Series. These examples do not include any fees or sales charges imposed by the variable insurance contract for which the Series is an investment option. If they were included, your costs would be higher and performance would be lower. Investors should consult the contract prospectus or disclosure documents for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2019n/an/a0.42%n/an/a

Please click here to view monthly holdings.

Portfolio characteristics - as of 10/31/2019
Number of holdings134
Market cap (median) Source: FactSetn/a billion
Market cap (weighted average) Source: FactSetn/a billion
Portfolio turnover (last fiscal year)268%
Beta, 3 years (relative to Bloomberg Barclays 1-3 Year US Government/Credit Index) (view definition)n/a
Annualized standard deviation, 3 years (view definition)n/a
Top 10 holdings as of 10/31/2019

Holdings are as of the date indicated and subject to change.

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

Holdings based by issuer.

Holding% of portfolio
UNITED STATES TREASURY25.06%
Federal National Mortgage Association11.33%
FREDDIE MAC5.07%
Heathrow Funding Ltd.2.23%
Discover Card Execution Note Trust2.17%
Hertz Vehicle Financing LLC1.88%
Anheuser-Busch InBev Worldwide Inc.1.77%
DNB Boligkreditt AS1.57%
Tesla Auto Lease Trust 2018-B1.57%
FREDDIE MAC GOLD1.55%
Total % Portfolio in Top 10 holdings54.20%
Roger Early

Roger A. Early, CPA, CFA

Senior Managing Director, Chief Investment Officer – US Fixed Income

Start date on the Fund: October 2019

Years of industry experience: 43

(View bio)


Brian McDonnell

Brian C. McDonnell, CFA

Senior Managing Director, Head of US Core Fixed Income

Start date on the Fund: October 2019

Years of industry experience: 30

(View bio)


Adam Brown

Adam H. Brown, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 21

(View bio)


John McCarthy

John P. McCarthy, CFA

Managing Director, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 32

(View bio)


The table below describes the fees and expenses that you may pay if you buy and hold shares of the Series. The fee table and example do not reflect any fees or sales charges imposed by variable insurance contracts. If they did, the expenses would be higher.

Annual series operating expenses
Management fees0.50%
Distribution and service (12b-1) feesnone
Other expenses0.64%
Total annual series operating expenses1.14%
Fee waivers(0.39%)
Total annual series operating expenses after fee waivers0.75%

1The Series' investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any acquired fund fees and expenses, taxes, interest, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual series operating expenses from exceeding 0.75% of the Series' average daily net assets from Oct. 4, 2019 through Oct. 31, 2021. These waivers and reimbursements may only be terminated by agreement of the Manager and the Series.

*The Series changed its broad-based securities index to the Bloomberg Barclays 1-3 Year US Government/Credit Index as of Jan. 31, 2019. The Series elected to use the new index because it more closely reflects the Series’ investment strategies.

**April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), a leading global investment management company, whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (Macquarie), would acquire FIMCO's asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund (each, an “Acquiring Fund,” and collectively, the “Acquiring Funds”) in the Delaware Funds by Macquarie family of funds (each, a “Reorganization” and together, the “Reorganizations”). Following the requisite approval of each Reorganization from shareholders of each First Investors Fund, each Acquiring Fund will be managed by DMC and each Acquiring Fund will have the same or substantially the same investment objective and the same or similar principal investment strategies and principal risks as the corresponding First Investors Fund. The Transaction closed on Oct. 4, 2019 (the “Closing Date”). Information, including without limitation historical holdings and performance information, relating to the Acquiring Funds for periods prior to the Closing Date has been provided by FIMCO and is attributable to the Acquired Funds.

All third-party marks cited are the property of their respective owners.

Carefully consider the Series' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Series' prospectus and its summary prospectus, which may be obtained by visiting delawarefunds.com/vip/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. The Series may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Series may be prepaid prior to maturity, potentially forcing the Series to reinvest that money at a lower interest rate.

The Series may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

The Series may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

If and when the Series invests in forward foreign currency contracts or use other investments to hedge against currency risks, the Series will be subject to special risks, including counterparty risk.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

During periods of falling interest rates, an issuer of a callable bond held by the Series may “call” or repay the security before its stated maturity. The Series would then lose any price appreciation above the bond’s call price and the Series may have to reinvest the proceeds at lower interest rates, resulting in a decline in the Series' income.

The market values of bonds and other debt securities are affected by changes in interest rates. In general, when interest rates rise, the market value of a debt security declines, and when interest rates decline, the market value of a debt security increases. Generally, the longer the maturity and duration of a debt security, the greater its sensitivity to interest rates. The yields received by the Fund on its investments will generally decline as interest rates decline.

Writing call options involves risks, such as potential losses if equity markets or an individual equity security do not move as expected and the potential for greater losses than if these techniques had not been used.

The Series may hold a significant amount of investments in similar businesses, which could be affected by the same economic or market conditions. To the extent the Series invests significantly in the financials sector, the value of the Series’ shares may be particularly vulnerable to factors affecting that sector, such as the availability and cost of capital, changes in interest rates, the rate of corporate and consumer debt defaults, credit ratings and quality, market liquidity, extensive government regulation and price competition.

An exchange-traded fund (ETF) is a security that represents all the stocks on a given exchange. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks.

Delaware VIP Series refers to Delaware VIP Funds. Delaware VIP Funds are not available for direct investment except for issuers of variable insurance product contracts. They are available only through the purchase of certain variable insurance products.

Fund Finder

Daily pricing (as of 11/15/2019)

Standard ClassPriceNet change
NAV$9.640.01
Max offer price$9.64n/a

Total net assets (as of 10/31/2019)

$32.4 million all share classes

Prospectuses and reports

Benchmark, peer group

Bloomberg Barclays 1–3 Year US Government/Credit Index (view definition)

ICE BofAML 1-5 Year US Broad Market Index (view definition)

Additional information